Stock of the day: Amazon

Stock of the day: Amazon
In the ever-shifting landscape of the stock market, Amazon has emerged as today's star. The reason is crystal clear: the company released its quarterly earnings report yesterday, and the numbers have left market enthusiasts pleasantly surprised.
The reported EPS stands head and shoulders above expectations, coming in at an impressive 0.94. This was not the only cause for celebration. The revenue figures have been nothing short of spectacular. At $143.1 billion, Amazon has outdone not just market predictions but perhaps its own benchmarks.

In the immediate aftermath, the after-hours trading charts painted a promising picture. Indications suggest that Amazon might open a significant 5% higher. This is particularly noteworthy given that during the trading session, the company witnessed a 1% dip.
From a technical analysis standpoint, the chart speaks volumes. Currently, the stock is tracing a bearish correction pattern. It’s sculpted in the form of a wedge and is distinctly marked by black lines. This is attributed to the triple top formation, evident from the yellow markings on the chart.

The good news for investors and traders is the position of the stock concerning the long-term trend. As of now, Amazon is treading along its long-term uptrend, signified by the red line on the chart. The impending higher opening doesn't just indicate market optimism post-earnings; it signals a potential reversal in trend. If this plays out, it would be a buy signal for many market participants.

However, the real clincher would be the breakout. If the price can successfully surpass the upper boundary of the wedge pattern, it would be a clear buy signal. Given the present market dynamics and Amazon's robust earnings report, the probability of such an event is high.

In conclusion, while the stock market is a game of uncertainties, Amazon's latest earnings report has sowed seeds of hope. The coming sessions will reveal whether the tech giant can capitalize on this momentum and offer traders a clear path amidst the usual market noise.
Show More Articles
Axiory uses cookies to improve your browsing experience. You can click Accept or continue browsing to consent to cookies usage. Please read our Cookie Policy to learn more.